BP reported earnings for the first quarter of the year, benefiting from rising oil and gas prices due to the conflict in the Middle East.
British Oil recorded underlying replacement earnings of $3.2 billion, beating analysts’ estimates of $2.63 billion, according to LSEG data.
BP attributed the performance to “excellent” results in oil trading and strong activity in its transportation and storage (midstream) business. By comparison, its net profit was $1.38 billion in the same period last year and $1.54 billion in the final quarter of 2025.
CEO Meg O’Neill said the company continues to deliver strong operational and financial performance, making progress towards its 2027 targets.
The stronger results come at a time when energy companies have seen their shares rise as fossil fuel prices settled following the start of the conflict between the US, Israel and Iran in late February.
Serious disruptions in the Strait of Hormuz have been described by the International Energy Agency as the biggest energy security threat in history.
BP’s shares have rebounded significantly over the past year, rising more than 32% through 2026, which ranks it among the top companies in the sector, behind only TotalEnergies.
However, the company’s net debt rose to $25.3 billion at the end of the first quarter, up from $22.18 billion at the end of 2025. BP aims to reduce this to levels between $14bn and $18bn by the end of next year.
For the remainder of 2026, the company expects production in the mining segment to decline due to planned maintenance work and developments in the Middle East, while maintaining its investment plan between $13 billion and $13.5 billion.
At the same time, BP management is facing investor resentment after a shareholder “mutiny” at the AGM, where proposals for governance and transparency changes in climate issues were rejected.
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